The wealth management unit of Deutsche Bank is ramping up its ESG focus in response to the increasing demand for such strategies.
As part of this plan, the bank will leverage MSCI’s ESG ratings, designed to support the identification of ESG risks and opportunities.
Moreover, the bank intends to bolster its ESG product line across discretionary wealth management and investment advisory.
The bank plans to promote sustainability across all of its business units and put in place effective risk-management processes to ward off negative ESG effects.
Notably, Deutsche Bank, which has been going through tough times, is currently looking to focus on wealth management as it believes that the business could be the key growth driver.
Deutsche Bank global head of wealth management Fabrizio Campelli said: “ESG comes up more and more often in our regular discussions with clients. ESG analysis, guidance and investments are rapidly becoming not just an important component of our client offering but the essential foundation for everything we do.
“A new generation of clients and society as a whole are becoming increasingly aware of the responsibility that comes with wealth and the positive impact that ESG factors can have on returns.
“They are rightly demanding that we enable them to add purpose to investment performance.”
Earlier this year, DWS Group – the asset management arm of Deutsche Bank, picked a 2.68% stake in ESG-scoring firm Arabesque S-Ray. The S-Ray tool of Arabesque S-Ray uses machine learning and big data to assess the sustainability of firms.